Fraud Convict Again Found Guilty of Fraud

Fraud Convict Again Found Guilty of Fraud

CEDAR RAPIDS – On February 22, 2012, Donald K Washburn of Linn County was convicted by a federal court in Cedar Rapids of wire fraud, money laundering and for making false statements to the United States Probation Office while on supervised release for a previous conviction on charges of fraud.  The convictions came after a trial that lasted seven days and after the jury had deliberated for about 10 hours.

According to evidence presented at the trial, Washburn lured victims into investing in mines of iron ore and other valuable minerals which he falsely claimed were owned by him.  The funds invested by the victims were used by him personally.

In another scheme, Washburn sold to his victims the exclusive licensing rights to a casino dice game which he falsely claimed belonged to him.  Portions of these frauds took place during the time Washburn was on supervised release for a previous conviction for fraud.

During this period Washburn filed, as required, monthly financial reports with the United States Probation Office which were false as they did not contain the financial transactions of his mining and dice game frauds.

Washburn, who was taken into custody by the United States Marshal pending sentencing before United States District Court Chief Judge Linda R. Reade, may be facing imprisonment of up to 20 years for each count of wire fraud, up to 10 years on each count of money laundering and up to five years for each false statement.  In addition, he is liable for a fine of up to double the amount of the fraud profit, double the amount of loss incurred by his victims, or $250,000 for every count of conviction.

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